Middle East Businesses Must Balance ESG Initiatives with Employee Priorities for Fair Pay and Career Growth

A recent PwC survey reveals that 80% of Middle East business leaders have formal sustainability strategies, yet employees prioritize fair pay and career growth over ESG initiatives. This disconnect highlights the need for companies to align their ESG and sustainability strategies with employee expectations to drive meaningful organizational change. 

In the Middle East, while companies focus heavily on ESG and sustainability, employees are more concerned with personal benefits such as fair pay and career development. Fair and equitable pay is the top factor in employee retention, with 94% likely to stay if salary increases are implemented. Bridging this gap is crucial for meaningful organizational change. 

ESG and sustainability are now critical for long-term business success, affecting policy, investment, operations, and employee engagement. As the Middle East transitions from fossil fuels, companies must adopt sustainable practices and improve transparency to meet investor expectations. PwC’s survey, “Breaking through barriers: Sustainability in the Middle East 2024,” shows that 80% of business leaders have formal sustainability strategies, with over half integrating them into operations. Regional CEOs also see climate change as a key driver for change. 

PwC’s data shows that employees prioritize their financial and personal well-being over sustainability practices. The survey indicates that 94% of respondents are likely to stay with their employers if fair and equitable salary increases are implemented. However, only 83% and 75% would stay if societal or environmental practices were enhanced. Enhancing ESG policies can improve employee retention, with 82% more likely to stay when ESG principles are embedded into organizational culture. 

Creating an ESG-focused culture is challenging. It requires top-down leadership, effective communication, and peer interactions. Understanding ESG employee personas is crucial. Integrating sustainability throughout the employee lifecycle—from onboarding to performance management—can foster a more engaged workforce. Aligning ESG initiatives with employee priorities through personalized approaches can transform them into dynamic elements of corporate culture, driving both environmental and social improvements and enhancing employee engagement. 

In conclusion, while ESG initiatives are essential for corporate reputation and operational efficiency, they must resonate with employees’ priorities to be truly effective. Balancing sustainability strategies with fair pay and career growth opportunities is key to retaining talent and achieving long-term sustainability goals. 

Sources: 

https://esgnews.com/80-of-middle-east-business-leaders-have-a-sustainability-strategy-but-employees-prioritize-fair-pay-over-esg-initiatives-pwc-survey/ 

https://www.pwc.com/m1/en/publications/esg-under-the-spotlight-yet-absent-from-employee-priorities.html